...MKTA - 011 Amul –Evolution of Marketing Strategy “If Amul has become a successful brand – if, in the trade lingo, it enjoys brand equity – then it is because we have honored our contract with consumers for close to fifty years. If we had failed to do so, then Amul would have been consigned to the dustbin of history, along with thousands of other brands. For close to fifty years now, Amul has honored its contract with the consumer. The contract that is symbolized by the Amul brand means quality. It means value for money. It means availability. And it means service.” Varghese Kurien, Chairman GCMMF1 Introduction C op y Gujarat Cooperative Milk Marketing Federation (GCMMF), the largest food company in India, recorded a turnover of Rs 2882 crore ($ 0.65 bn) in 2003-04. Its flagship brand ‘Amul’ was the market leader in butter, whole milk, cheese, ice cream and dairy whitener. GCMMF was the largest cooperative movement in India with 2.2 million milk producers of Gujarat organized in 10,552 cooperative societies. GCMMF collected 5 million litres of milk per day from its shareholders who owned 3.2 million buffaloes, one million cows and 0.3 million crossbred cows. The Federation’s extensive marketing network comprised 3000 distributors and 500,000 retailers spread across the country. ot Background Note D o N Amul’s genesis was linked to the freedom movement in India. Sardar Vallabhbhai Patel, an eminent Indian freedom fighter encouraged...
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...MKTA - 011 Amul –Evolution of Marketing Strategy “If Amul has become a successful brand – if, in the trade lingo, it enjoys brand equity – then it is because we have honored our contract with consumers for close to fifty years. If we had failed to do so, then Amul would have been consigned to the dustbin of history, along with thousands of other brands. For close to fifty years now, Amul has honored its contract with the consumer. The contract that is symbolized by the Amul brand means quality. It means value for money. It means availability. And it means service.” Varghese Kurien, Chairman GCMMF1 Introduction C op y Gujarat Cooperative Milk Marketing Federation (GCMMF), the largest food company in India, recorded a turnover of Rs 2882 crore ($ 0.65 bn) in 2003-04. Its flagship brand ‘Amul’ was the market leader in butter, whole milk, cheese, ice cream and dairy whitener. GCMMF was the largest cooperative movement in India with 2.2 million milk producers of Gujarat organized in 10,552 cooperative societies. GCMMF collected 5 million litres of milk per day from its shareholders who owned 3.2 million buffaloes, one million cows and 0.3 million crossbred cows. The Federation’s extensive marketing network comprised 3000 distributors and 500,000 retailers spread across the country. ot Background Note D o N Amul’s genesis was linked to the freedom movement in India. Sardar Vallabhbhai Patel, an eminent Indian freedom fighter encouraged...
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...An Outstanding Story from India: Creating Competitive Advantage Prepared by: (Group # 1) Arun Reddy Patel (G13068) Neha Bhartiya (G13085) Neha Dani (G13086) Preeti Venugopalan (G13091) Roopashree BE (G13097) TABLE OF CONTENTS INTRODUCTION ........................................................................................................................................ 3 THE GENESIS ............................................................................................................................................. 3 ABOUT GCMMF ......................................................................................................................................... 3 THE THREE TIER AMUL MODEL ........................................................................................................... 4 INDIAN DIARY INDUSTRY – AN OVERVIEW...................................................................................... 5 COMPANY OVERVIEW ............................................................................................................................ 6 Sales .............................................................................................................................................................. 6 Retailing ........................................................................................................................................................ 7 Export...................................................................
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...courses which has its own unique role clarify likely others. But unlike the other professional courses one of its basic requisite for the students of IV semester MBA during the study terms is to undertake practical training in any one public limited industry. From this industrial training, I can visualize that there is much difference between theory and practical life. After training period, we have good management student. The industrial training is very important for MBA program. In industry or company, there are many problem arises. Often during the time period of industry training, I come to know that how successful management team solves this entire problem. Thus, I visited KAIRA DISTRICT CO-OPERATIVE MILK PRODUCER UNION LIMITED (AMUL), ANAND for 3 months. This industrial training offers me to blend the practical knowledge of the company of industry. ACKNOWLEDGEMENT Industrial Training is not only part of our syllabus but it is the golden opportunities for our knowledge enrichment. With the great pleasure, here I take the opportunity to express my towards all who have helped me at various stage of...
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...Initiating Coverage March 23, 2012 Rating Matrix Rating Target Target Period Potential Upside : : : : Buy | 5074 12-15 months 10 % Nestlé India (NESIND) Strong brand dominance to rule growth… CY13E 16.8 18.0 19.0 19.0 | 4604 YoY Growth (%) (YoY Growth) Net Sales EBITDA Net Profit EPS (Rs) CY10 21.9 20.8 25.0 25.0 CY11 19.8 24.3 17.5 17.5 CY12E 18.8 17.3 22.4 22.4 Current & target multiple P/E (Adjusted) Target P/E EV / EBITDA P/BV Price / Sales RoNW RoCE CY10 53.0 59.9 35.3 51.9 7.1 95.7 131.2 CY11 43.6 51.0 29.2 34.8 5.9 75.5 62.3 CY12E 37.7 41.7 24.7 24.2 5.0 64.1 64.6 CY13E 31.7 35.0 20.8 18.1 4.3 57.1 67.0 Stock Data Bloomberg/Reuters Code Sensex Average volumes Market Cap (| crore) 52 week H/L Equity Capital (| crore) Promoter's Stake (%) FII Holding (%) DII Holding (%) NEST.IN / NEST.BO 17,361.7 6,515.0 44,389.8 4588 / 3501 96.4 62.8 10.9 8.0 Comparative return matrix (%) Return % HUL ITC GSK Nestle 1M 2.9 4.6 5.3 2.9 3M 9.1 (3.1) 7.8 9.8 6M 5.8 19.3 15.1 4.8 12M 25.2 47.9 29.2 22.7 Nestlé India Limited (NIL), the undisputed leader of instant noodles (~88% share by volume in FY11) and milk products segment in India, is largest food company in country. Its strong brands, ‘Maggi’, ‘Cerelac’, ‘Nescafe’ and ‘KitKat’ have become synonymous with the respective categories. Despite increasing competition in the segments (noodles, milk products and chocolate), NIL’s strong brand value has helped it to consistently maintain its volume growth (~12% CAGR FY04-11). Going ahead...
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...`A Report ON Foreign Investment In The FMCG Sector "There was a time, not long ago FMCG was on the go, Other sectors were mere midgets, Growth was in the double digits. Alas, all of that's in the past! The growth today is not so fast. There are reasons, that's for sure. Nowadays sales tax is more And durables are selling better, The weather surely could be wetter. My job is just to set the stage Describe the current sorry age. Adi, of course, will paint the scene And tell us why the times are lean." Mr. Nadir Godrej Executive summary The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion. It has a strong MNC presence and is characterized by a well-established distribution network, intense competition between the organized and unorganized segments and low operational cost. Availability of key raw materials, cheaper labor costs and presence across the entire value chain gives India a competitive advantage. The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc. Burgeoning Indian population, particularly...
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...FAST MOVING CONSUMER GOODS www.ibef.org FAST MOVING CONSUMER GOODS WHY INDIA INDIA COMPETITIVENESS AND COMPARISON WITH THE WORLD MARKETS POLICY TRENDS AND PLAYERS MARKET OPPORTUNITIES FOR INVESTMENT ANNEX: APEX CONTACTS AGENCIES 3 7 9 12 32 38 A report by PricewaterhouseCoopers for IBEF Executive summary The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion. It has a strong MNC presence and is characterised by a wellestablished distribution network, intense competition between the organised and unorganised segments and low operational cost. Availability of key raw materials, cheaper labour costs and presence across the entire value chain gives India a competitive advantage. The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. Growth is also likely to come from consumer 'upgrading' in the matured product categories. With 200 million people expected to shift to processed and packaged food by 2010, India needs around US$ 28 billion of investment in the food-processing industry. FAST MOVING CONSUMER...
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...The Battle R e ta i l for What is FDI in retail? Retail battle: It’s finally about politics and numbers, not FDI FDI in retail: Why it works for everyone FDI fineprint: Easing FDI doesn’t ease problems plaguing retail 04 06 08 The verdict FDI in retail: Why the politicians are illogical, and have got it wrong Don’t pity the kirana guy, he knows how to fight back Economy, not kirana shops, is biggest loser in retail FDI debate Why the kirana dukan doesn’t care about Big Brother 11 13 15 17 All sides of the debate GOVERNMENT FDI in retail ‘distinct and different’: Sharma Out on a limb: Govt says FDI in retail will ‘immensely benefit farmers’ Reader debate: Is FDI in retail bane or boon? PUBLIC India Inc appeals political parties to support FDI in retail India Inc divided over FDI in multi-brand retail INDUSTRY FDI in retail: Opposition, allies term it anti-people Will not allow Parliament to function until FDI in retail is withdrawn: NDA OPPOSITION Why some farmers are relieved to be dealing with Wal-Mart Farmers Retail FDI: The merits are over-hyped, say academics Academics Cong meets over FDI in retail: Is a rollback on the cards? Will FDI last? FDI nod given, global retailers wait for more clarity The world is waiting FDI in retail What is ? Retail battle: It’s finally about politics and numbers, not FDI he Congress is hell-bent on pushing through its proposal for foreign direct investment (FDI)...
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...Impact of Organized Retailing on the Unorganized Sector Mathew Joseph Nirupama Soundararajan Manisha Gupta Sanghamitra Sahu May 2008 INDIAN COUNCIL FOR RESEARCH ON INTERNATIONAL ECONOMIC RELATIONS Foreword The retail sector is expanding and modernizing rapidly in line with India’s economic growth. It offers significant employment opportunities in all urban areas. This study, the second undertaken by ICRIER on the retail industry, attempts to rigorously analyse the impact of organized retailing on different segments of the economy. No distinction has been made between foreign and domestic players, in analyzing the impact of the increasing trend of large corporates entering the retail trade in the country. The findings of this study are based on the largest ever survey of unorganized retailers (the so-called “mom and pop stores”), consumers, farmers, intermediaries, manufacturers, and organized retailers. In addition, an extensive review of international experience, particularly of emerging countries of relevance to India, has also been carried out as part of the study. The study estimates that the total retail business in India will grow at 13 per cent annually from US$ 322 billion in 2006-07 to US$ 590 billion in 2011-12. The unorganized retail sector is expected to grow at approximately 10 per cent per annum with sales rising from US$ 309 billion in 2006-07 to US$ 496 billion. Organized retail, which constituted a low four per cent of total retail in 2006-07, is estimated...
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